Gilead and Genesis Therapeutics Announce Strategic Collaboration to Discover and Develop Novel Therapies

-- Gilead and Genesis Will Leverage the GEMS AI Platform to Generate and Jointly Optimize Molecules Against Selected Targets --

-- Gilead Receives Exclusive Rights to Develop and Commercialize Products from the Collaboration --

Gilead Sciences, Inc. (NASDAQ:GILD) and Genesis Therapeutics, Inc. announced today that the companies have entered into a strategic collaboration to discover and develop novel, small molecule therapies across multiple targets.

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Genesis is pioneering generative and predictive artificial intelligence (AI) technologies to help create therapeutics for challenging targets. This collaboration will deploy Genesis' field-leading AI platform, GEMS (Genesis Exploration of Molecular Space), to assist in generating and optimizing molecules for targets selected by Gilead. The companies will collaborate closely on preclinical research activities and Gilead will have exclusive rights for potential clinical development and commercialization of collaboration compounds.

"The use of generative AI in drug development, enabled by people, science and other new technology, has shown potential to accelerate the discovery of molecules for challenging targets," said Flavius Martin, M.D., Executive Vice President, Research, Gilead Sciences. "We look forward to working with Genesis to apply their AI platform to discover and advance novel therapies that may address significant unmet patient needs."

"Many promising protein targets have a paucity of relevant training data, which makes it difficult to apply off-the-shelf machine learning methods," said Evan Feinberg, Ph.D., founder and CEO of Genesis. "We have designed our physical AI platform to address this issue and enable drug discovery campaigns for difficult targets. Genesis is thrilled to combine our expertise in generative AI and drug discovery with Gilead's deeply experienced research and development teams, with the shared goal of creating breakthrough therapies for patients."

Terms of the Agreement

Under the terms of the agreement, Genesis will receive an upfront cash payment of $35 million across three targets and Gilead will have an option to nominate additional targets for a predetermined per-target fee. Across programs, Genesis is eligible to receive additional preclinical, development, regulatory, and commercial milestone payments. Genesis is also eligible to receive tiered royalties on net sales should Gilead successfully commercialize products from the collaboration.

Gilead does not exclude acquired IPR&D expenses from its non-GAAP financial measures. This transaction with Genesis is expected to reduce Gilead's GAAP and non-GAAP 2024 EPS by approximately $0.02.

About Genesis Therapeutics

Genesis Therapeutics, Inc. is an AI-focused biotechnology company leveraging its generative and predictive AI platform, GEMS (Genesis Exploration of Molecular Space), for small molecule drug discovery. GEMS integrates proprietary AI methods, including language models, diffusion models and physical ML simulations, to generate and optimize molecules for complex targets. Genesis has raised over $300 million from leading life science, tech, and AI-focused investors, and is building a therapeutic pipeline for a variety of high-impact targets. Genesis is headquartered in Burlingame, CA, with a fully integrated laboratory in San Diego. For more information on Genesis, please visit the company's website at www.genesistherapeutics.ai.

About Gilead Sciences

Gilead Sciences, Inc. is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19, and cancer. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, Calif.

Gilead Forward-Looking Statement

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors, including Gilead's ability to realize the anticipated benefits from the collaboration; difficulties or unanticipated expenses in connection with the collaboration and the potential effects on Gilead's earnings; the ability of the parties to initiate, progress or complete clinical trials within currently anticipated timelines or at all, and the possibility of unfavorable results from ongoing or additional trials, including those involving programs developed pursuant to the collaborations; the ability of the parties to file applications for regulatory approval or receive regulatory approvals in a timely manner or at all for the investigational programs developed pursuant to the collaborations, and the risk that any such approvals may be subject to significant limitations on use; the possibility that the parties may make a strategic decision to discontinue development of any of the investigational programs developed pursuant to the collaborations, and therefore these programs may never be successfully commercialized; and any assumptions underlying any of the foregoing. These and other risks, uncertainties and other factors are described in detail in Gilead's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, as filed with the U.S. Securities and Exchange Commission. These risks, uncertainties and other factors could cause actual results to differ materially from those referred to in the forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The reader is cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and is cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are based on information currently available to Gilead, and Gilead assumes no obligation and disclaims any intent to update any such forward-looking statements.

Gilead and the Gilead logo are trademarks of Gilead Sciences, Inc., or its related companies.

For more information about Gilead, please visit the company's website at www.gilead.com, follow Gilead on X/Twitter (@Gilead Sciences) and LinkedIn (@Gilead-Sciences).

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